Epcg is a zero duty scheme which allows the import of capital goods such as machinery for. In respect of epcg licences with a duty saved of rs. Chapter 5 export promotion capital goods epcg scheme. So, the cash outlay under project import regulations will be more and the noncenvatable duty component will also be higher by 0. Import under epcg shall be subject to export obligation equivalent to six times of duty saved in six years. The scheme allows nil import duty subject to export obligation. Epcg scheme duty exemption and remission schemes deemed exports. Epcg scheme know about export promotion capital goods.
Epcg scheme is a very beneficial export promotion scheme through which. Export promotion capital goods epcg scheme ca affinity. Export promotion capital goods epcg epcg is a scheme announced by govt of india to promote the production of quality productsservices exported from india. I may be referred for the list of products and countries. Authorization shall be valid for import for 18 months from the date of issue of authorization. Export promotion capital goods epcg scheme policy 5. From april 20, the government has merged zero duty epcg and 3% epcg scheme into one scheme which is now known as zero duty epcg scheme covering all sectors. There will be no export obligation under project import regulations, whereas under epcg scheme, export obligation will be imposed. The post export epcg duty credit scripts shall be available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme.
The zero duty epcg scheme is available to exporters of electronic products. Find here details about our company including contact and address. There are around 5000 products so far covered at 8 digit level. Export promotion capital goods epcg scheme overview hand book of procedures foreign trade policy. Eximkey india dgft, customs, excise, export import policy. The scheme was started when the foreign exhange levels were very low and the only main source of foreign exchange for the country was remittances by nri and tourism. Export promotion schemes exist since 1980 in india.
Policy relating to epcg scheme is given in chapter 5 of ftp. Zero duty epcg scheme allows import of capital goods for preproduction, production and post production including ckdskd thereof as well as computer software systems at zero customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issuedate. Epcg scheme export promotion capital goods under export import policy 2015 20. Dgft makes amendment for import export under epcg scheme. Hospitality biz india epcg a dampener on indian ingenuity. Epcg is a scheme which is primarily related to machinery, machinery parts and also similar goods. Export promotion capital goods epcg scheme allows import of capital goods including spares for preproduction, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issue date.
Import under epcg scheme shall be subject to an export obligation equivalent to 6 times of duty saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of authorization. Electronics hardware technology park ehtp scheme 64 9. Whether export under epcg scheme is eligible for meis and other schemes. Export promotion capital goods epcg scheme gktoday.
Computer systems and software as partscomponents of the capital goods. Epcg scheme allows import of capital goods for pre production, production and post production including ckd skd thereof as well as computer software systems at 3% customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 8 years reckoned from authorisation issuedate. This scheme under foreign trade policy allows technological upgradation of the indigenous industry. Search by sector, ministry or department to find government schemes and grants relevant to your startup or idea. Under epcg scheme, the aggregate duty payable will be 5. Epcg scheme covers manufacturer exporters with or without supporting manufacturers vendors, merchant exporters tied to supporting manufacturers and service providers. The scheme also covers a service provider who is designated certified as a common service provider csp. Duty thus saved can be used to factor in the costing of export products services. Ckdskd thereof as well as computer software systems at 3% customs duty.
The epcg scheme allows upgradation of technology in the exports industry and the regional licensing authority of director general of foreign trade issues the epcg authorisations. Epcg scheme, while other units are dta units, then the average export obligation in respect of the authorisations issued to the firm company other than debonding unit shall remain unchanged and the average eo, after debonding of the unit, shall be fixed b y excluding the exports made by the debonded unit from the total. Electronic hardware schemes ministry of electronics and. The export promotion capital goods scheme epcg is an initiative by the government of india and is a part of the foreign trade policy ftp 201520. Electronic hardware technology park ehtp scheme to export electronic hardware. Epcg can be taken for the full projects where exports of goods or services can be envisaged by the use of the project or alternative products. Epcg is a scheme announced by govt of india to promote the production of quality productsservices exported from india. Epcg scheme zero duty scheme foreign trade policy, 20092014 has harmonized the two versions zero duty and 3% concessional duty of epcg schemes w. Zero duty epcg scheme allows the import of capital goods for the purpose of preproduction, production and postproduction including completely knocked down semi knocked downthereof as well as computer software systems at zero customs duty, which is subject to an export obligation which is equivalent to 6 times of. Epcg scheme under new foreign trade policy 201520 ftp.
Software technology park stp scheme to export technology. Any company which is involved either in the manufacturing sector or in heavy production which intends to import machinery for its factories from a foreign country can be considered under this scheme. Export promotion capital goods epcg scheme allows import of capital goods including spares for preproduction, production and postproduction at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issue. Export promotion capital goods epcg scheme the zero duty epcg scheme is available to exporters of electronic products. Special economic zones sez scheme electronics hardware technology. Scheme a zero duty epcg scheme allows import of capital goods for preproduction, production and post production including ckdskd thereof as well as computer software systems at zero customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 6 years reckoned from authorization issuedate.
An application for grant of an authorisation may be madeby registered office or head office or a branch office or manufacturing unit of an eligible. Under the scheme, epcg authorizations are issued with actual user condition and import validity of 24 months to import capital goods except those specified in negative list for preproduction, production and postproduction at zero customs duty, and subject to fulfilment of specific export obligation equivalent to 6 times of duties, taxes and. Zero duty epcg export promotion capital goods scheme in this scheme, which applies to exporters of electronic products, import of capital goods for production, preproduction, and postproduction is allowed at zero percent customs duty if the export value is at least six times the duty saved on capital goods imported. Mahalakshmi overseas we offer epcg scheme in sector 49, gurgaon, haryana. Export promotion capital goods epcg scheme the zero duty. Export promotion capital goods epcg scheme startup india. In other words, for new applicants there is now only either zero duty epcg or postexport epcg. An advantageous scheme for procurement of capital goods. A zero duty epcg scheme government has announced zero duty epcg scheme for certain product groups. Zero duty epcg scheme allows import of capital goods for preproduction, production and post production including completely knocked down semi knocked downthereof as well as computer software systems at zero customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under epcg scheme, to be. The scheme allows import of capital goods for pre production, production and post production including ckdskd thereof as well as computer software systems at 5% customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence. It allows import of capital goods for preproduction, production and postproduction including ckdskd thereof as well as computer software systems at zero% customs duty, subject to an export obligation.
Export promotion capital goods epcg scheme is a scheme which allows an exporter to import of capital goods including spares for preproduction, production and postproduction at zero customs duty, for exports. In the new scheme, available from 18 april 20, epcg in its dutyexemption avatar is a complete waiver of import duties. Epcg under foreign trade policy 201520 how to export. Yes, meis benefit is over and above all schemes under the policy. Epcg scheme for software sector allows import of capital goods at 5 % basic customs duty subject to undertaking certain export commitments a number of special schemes including export oriented unit, special economic zone etc offer a wide range of duty concessions and exemptions for it exports. Under this scheme, according to the foreign trade policy 2015 20 re 17, a company can import capital goods from. Assessing the impact of imports under epcg scheme on india. Basic customs duty paid on capital goods shall be remitted in the form of. Under the epcg scheme, a domestic manufacturer can import capital goods at only 3 per cent customs duty, irrespective of the applicable duty rate. The authorisations are issued based on nexus certification granted by an independent chartered engineer. We will not completely ban the imports, but actively considering lifting concessions on such imports, like we can stop benefits under the export promotion of capital goods scheme, the official said.
Epcg scheme is one of the best export promotion schemes introduced by government under foreign trade policy where in import of capital goods can be effected at nil or concessional import customs duties based on the conditions specified in the customs notifications and export obligations. Zero duty epcg for few sectors and 3% duty epcg for all sectors. What are the conditions and obligations under epcg scheme. Today the foreign exchange comes from several sectors of the economy hence to continue with epcg has no meaning at all, says pa prabhu, director, revac systems. Gk, general studies, optional notes for upsc, ias, banking, civil services. In case of agro units, and units in cottage or tiny sector, import of capital. It was first operationalised on 1 april 2015 and under this scheme, capital goods imported for the manufacture of export products enjoy zero or concessional rates in the customs duty. Also, igst on import of capital goods under epcg is exempted till 31 st march 2020. External sector and indias foreign trade policy ftp 200914 annual report 2014 45 china amongst others.
Benefits of export promotion capital goods scheme epcg. New foreign trade procedure known as exim procedure 2015. Biotechnology park btp scheme for export of bio technology products. Epcg scheme in gurgaon, sector 49 by mahalakshmi overseas. In case of agro units and units in cottage and tiny sector. Epcg scheme export promotion capital goods scheme by studycafe 1 year ago 2 months ago this is a very beneficial export promotion scheme through which capital goods required for export production is allowed duty free. Project import regulations and the epcg schemes business. Epcg scheme consultant india export promotion capital goods. Know about epcg scheme and epcg license apply iec code. Epcg can be taken along with project import scheme in case of new projects. Epcg benefits on used capital goods imports may stop the. On 5th june, 2012, a new post export epcg scheme was also anno. The concessional 3% duty epcg scheme allows import of capital goods for preproduction, production and postproduction including ckdskd thereof as well as computer software systems at 3% customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under epcg scheme, to be fulfilled in 8 years reckoned from authorization issuedate.